Agile product development has become a cornerstone for businesses aiming to deliver customer-centric tech solutions effectively. However, for organizations operating in compliance-driven, risk-averse, and highly regulated sectors such as government, banking, healthcare, and insurance, adopting agile practices can seem daunting.
Harry Narang, a world-renowned business agility consultant, has guided 25+ compliance-driven organizations through their digital transformations through SAFe – the world’s preferred system for business agility.
Below, he offers five key strategies for implementing scaled agile practices in these highly regulated environments.
Build Compliance into Each Solution-Based Value Stream
The first step in bringing agility into regulated environments is to integrate compliance expertise into each solution-based value stream. This means having one or two compliance leads, legal specialists, and risk management experts actively involved in the exploration and execution process with engineering teams. These subject matter experts (SMEs) can provide vital perspectives to product development teams by addressing compliance and risk considerations from the initial stages. A proactive approach, this not only enhances speed but also reduces the potential for risk-related roadblocks down the line. Cultivating this collaborative environment where compliance experts and engineers work together ensures that compliance implications are understood and executed effectively throughout the development lifecycle.
Embrace Medium to Long-Term Roadmapping
Balancing intentionality with emergence is a critical aspect of agility in compliance-driven environments. Many compliance-driven requirements have longer lead times and necessitate architecture or infrastructure-level exploration and proof of concepts before implementation. Organizations often fall into the pitfall of neglecting medium to long-term forecasting, hampering their ability to deliver predictable, compliant value to stakeholders. Creating adaptable roadmaps that allow for flexibility in response to changing regulatory landscapes and market demands is essential for maintaining alignment with business goals while ensuring compliance.
Utilize AI-Driven Compliance Automation
Automation is a powerful ally in achieving agility while maintaining compliance. By automating documentation and validation tests (regulatory, security, architecture, etc.), teams and organizations can continuously assess compliance throughout development. Leveraging AI-driven tools can elevate the efficiency and accuracy of compliance processes, enabling organizations to stay ahead of regulatory changes. This incremental and automated approach helps reduce the likelihood of surprises at the end of a development cycle, streamlining the path to regulatory approvals.
Invest in Team Training
An agile mindset should be cultivated within product development teams. This means providing training that familiarizes team members with regulatory compliance, risk management, security concerns, and legal perspectives. Ongoing training and upskilling initiatives ensure that teams remain abreast of evolving compliance requirements and industry best practices. By weaving these considerations into the development process, organizations can significantly reduce the need for exhaustive compliance validation at the project’s conclusion, saving time and resources.
Build Compliance Incrementally
This goes hand in hand with #3 and other points above but must be highlighted.
A common mistake in highly regulated environments is deferring compliance testing until the end of a lengthy development cycle. This approach often leads to unforeseen issues, scope changes, and extensive rework, resulting in delays and inefficiencies. Instead, organizations should incorporate compliance into each increment of a value stream – typically two weeks. This ensures that the increments of value demonstrated or delivered to customers consistently meet regulatory standards, promoting trust and satisfaction while enhancing the overall development process. By integrating compliance early and iteratively, teams can address potential issues proactively, mitigating risks and ensuring smoother project execution.
While these strategies may seem straightforward, they often require a shift in mindset, culture, and organizational adaptation, making their implementation challenging. As Harry Narang wisely suggests, “Just like we build in small increments, we evolve in small increments. Pick one or two of the above recommendations and start by making small changes, gradually transforming your organization to achieve business agility.”
Published By: Aize Perez
